New landlord - tax relief and Returns

[bing]

Hey folks...


I am new to the whole 'renting my property out' scenario so have a few questions i hope you guys can help me out here:-

1) I have an interest only mortgage on my rental property and a repayment on my residential property, I've heard that there are some tax relief advantages to be had here, how does this work and what forms do I need to complete?

2) What forms do I need to complete in order to declare my rental income?

3) How do I claim my rental property expenses/maintenance back?

I know these may seem like trivial questions but I am very new to this and your help would be appreciated.


thanks


Bing

[Paragon]

If you are running a business - should you not be getting a tax accountant? There are a lot of tax reliefs available - such as a room set up as an office in your home, telephone expenses for running the business, post, and on and on.

[P.Pilcher]

You are well advised to find an accountant as soon as possible. They usually manage to save you more tax than their fees - which are also tax deductible.

P.P.

[TaxationPete]

http://www.hmrc.gov.uk/manuals/pimmanual/PIM2015.htm

http://www.hmrc.gov.uk/manuals/pimmanual/pim2020.htm

http://www.hmrc.gov.uk/manuals/PIMMANUAL/PIM2000.htm

That will keep you busy a while. As Mr Pilcher says, find yourself a independant well versed accoutant. You will have to learn what to ask for as accountants can and do say yes I have landlord clients, true but is he getting the best for them. HMRC do not ring you up when you have not claimed a relief.

I assume the interest only rental property has not at any time been your home so you need to understand Capital Gains Tax as well. If you are alredt renting then the interest on the Mortgage you are paying is deductable against your gross rental income also allowable is property insurance lease payments, maintenance, gas sevice, loads of things you keep records of and once a year you complete a SA tax return becuase you have ask for one and declared you are a rental business and in the appropriate pages you declare your actual 'Profit' after all the expenses. If the profit is greater then £15,000 then you have to supply accounts but if less that it is just the bottom line and few details, however you must keep accounts as they can check on anyone. For 2-300 pounds a year an accountant does all this deducts his fee and submits your IR SA return. Regards Peter

[bing]

thanks all i'll get onto this ASAP!!!

[Thyrsis]

[
and in the appropriate pages you declare your actual 'Profit' after all the expenses. If the profit is greater then £15,000 then you have to supply accounts but if less that it is just the bottom line and few details, however you must keep accounts as they can check on anyone.

According to the info on http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10014027

If your annual income from the letting is less than £15,000 (before you've taken off expenses) you include the total expenses on your tax return; if it's £15,000 or over you need to provide a breakdown.

[TaxationPete]

Quite correct. I stated profit and it is in fact income. Regards Peter